BUDGET SCENARIOS
Exhibit I-1:
Annual Tuition and Fees Increases Required to
Balance 5-Year Budget Scenarios
  Personnel Costs
Appropriation
Change
A.
Further
Slippage
B.
Peer
Average
C.
1 Percent
Catch-Up
1.      -5.0% 12.3% 13.5% 14.7%
2.      -3.0% 11.3% 12.5% 13.7%
3.        0.0% 9.8% 11.0% 12.2%
4.        2.0% 8.8% 10.0% 11.3%
5.       4.0% 7.8% 9.0% 10.2%

Note: Each row and column combination represents one scenario (e.g., Scenario B-2 includes personnel costs at the peer average level and assumes an appropriation change of -3.0 percent.) The detail of each of the 15 scenarios is presented in Exhibits I-2 through I-4.


 
Exhibit I-2:
Budget Scenarios* - Average Annual Expense and Income Changes
Personnel Costs = Further Slippage
(Dollars in Thousands)
        Scenario   Scenario   Scenario   Scenario   Scenario
      A1   A2   A3   A4   A5
   
Assumptions:                        
    Personnel Cost Increase Percent   4.0%   4.0%   4.0%   4.0%   4.0%
    Appropriation Increase Percent   -5.0%   -3.0%   0.0%   2.0%   4.0%
    Tuition Increase Percent   12.4%   11.4%   9.8%   8.8%   7.7%
    Information Resources and Tech Fee ($15)                    
    Student Activities Fee ($1)                    
    Total Tuition and Fees Increase Percent   12.3%   11.3%   9.8%   8.8%   7.8%
Expense Changes:                        
  1. Personnel Cost Increases                    
    a. Salary Increase   19,666   19,666   19,666   19,666   19,666
    b. Related Benefits     3,147     3,147     3,147     3,147     3,147
          Sub-Total   22,813   22,813   22,813   22,813   22,813
  2. Benefits & Insurances                    
    a. Health Care Insurance   9,277   9,277   9,277   9,277   9,277
    b. Other**     5,000     5,000     5,000     5,000     5,000
           Sub-Total   14,277   14,277   14,277   14,277   14,277
  3. Facilities                    
    a. Deferred Maintenance   1,000   1,000   1,000   1,000   1,000
    b. Capital Improvement   2,500   2,500   2,500   2,500   2,500
    c. New Facilities & Fuel & Utilities     3,500     3,500     3,500     3,500   3,500
           Sub-Total   7,000   7,000   7,000   7,000   7,000
  4. Program Needs                    
    a. Academic Initiatives   1,250   1,250   1,250   1,250   1,250
    b. Program Investments   6,000   6,000   6,000   6,000   6,000
    c. Student Activities   126   126   126   126   126
    d. School of IST   1,000   1,000   1,000   1,000   1,000
    e. Library/Information Technology   2,000   2,000   2,000   2,000   2,000
    f. Other Priority Needs   1,500   1,500   1,500   1,500   1,500
           Sub-Total     11,876     11,876     11,876     11,876     11,876
  5. a. Budget Reductions   (5,500)   (5,500)   (5,500)   (5,500)   (5,500)
    b. Reallocations and Enhancements     5,500     5,500     5,500     5,500     5,500
           Sub-Total   0   0   0   0   0
  6. Student Aid   1,200   1,200   1,200   1,200   1,200
  7. Total Expense Changes   57,166 57,166 57,166   57,166   57,166
Income Changes:                        
  8. State Appropriation Change E&G   (12,795) (7,677)   0   5,118   10,236
  9. Tuition   61,335 56,217 48,540   43,422   38,304
  10. Tuition - Summer Session   2,600   2,600   2,600   2,600   2,600
  11. Information Resources and Technology Fee   2,000   2,000   2,000   2,000   2,000
  12. Student Activites Fee   126   126   126   126   126
  13. Enrollment Related & Other Inc. Changes     3,900     3,900     3,900     3,900     3,900
  14. Total Income Changes (Net)   57,166   57,166   57,166   57,166   57,166
  15. Surplus (Deficit)(Line14 Minus Line 7)   0   0   0   0   0
       
 
 
 
 
* Total University Excluding Hershey, PCT & Ag Research & Extension                        
* * Retirement, Graduate Assistant Health Benefits, Property & Liability Insurances.                    
 


Exhibit I-3:
Budget Scenarios* - Average Annual Expense and Income Changes
Personnel Costs = Peer Average
(Dollars in Thousands)
        Scenario   Scenario   Scenario   Scenario   Scenario
        B1   B2   B3   B4   B5
     
  Assumptions:                      
    Personnel Cost Increase Percent   5.0%   5.0%   5.0%   5.0%   5.0%
    Appropriation Increase Percent   -5.0%   -3.0%   0.0%   2.0%   4.0%
    Tuition Increase Percent   13.7%   12.6%   11.1%   10.1%   9.0%
    Information Resources and Tech Fee ($15)                    
    Student Activities Fee ($1)                    
    Total Tuition and Fees Increase Percent   13.5%   12.5%   11.0%   10.0%   9.0%
Expense Changes:                        
  1. Personnel Cost Increases                    
    a. Salary Increase   25,099   25,099   25,099   25,099   25,099
    b. Related Benefits     4,016     4,016     4,016     4,016     4,016
          Sub-Total   29,115   29,115   29,115   29,115   29,115
  2. Benefits & Insurances                    
    a. Health Care Insurance   9,277   9,277   9,277   9,277   9,277
    b. Other**     5,000   5,000     5,000     5,000     5,000
          Sub-Total   14,277   14,277   14,277   14,277   14,277
  3. Facilities                    
    a. Deferred Maintenance   1,000   1,000   1,000   1,000   1,000
    b. Capital Improvement   2,500   2,500   2,500   2,500   2,500
    c. New Facilities & Fuel & Utilities     3,500     3,500     3,500     3,500     3,500
          Sub-Total   7,000   7,000   7,000   7,000   7,000
  4. Program Needs                    
    a. Academic Initiatives   1,250   1,250   1,250   1,250   1,250
    b. Program Investments   6,000   6,000   6,000   6,000   6,000
    c. Student Activities   126   126   126   126   126
    d. School of IST   1,000   1,000   1,000   1,000   1,000
    e. Library/Information Technology   2,000   2,000   2,000   2,000   2,000
    f. Other Priority Needs     1,500     1,500     1,500     1,500     1,500
          Sub-Total   11,876   11,876   11,876   11,876   11,876
  5. a. Budget Reductions   (5,500)   (5,500)   (5,500)   (5,500)   (5,500)
    b. Reallocations and Enhancements     5,500     5,500     5,500     5,500     5,500
          Sub-Total   0   0   0   0   0
  6. Student Aid   1,200   1,200   1,200   1,200   1,200
  7. Total Expense Changes   63,468 63,468 63,468   63,468   63,468
 
Income Changes:                  
  8. State Appropriation Change E&G   (12,795) (7,677)   0   5,118   10,236
  9. Tuition   67,637 62,519 54,842   49,724   44,606
  10. Tuition - Summer Session   2,600   2,600   2,600   2,600   2,600
  11. Information Resources and Technology Fee   2,000   2,000   2,000   2,000   2,000
  12. Student Activites Fee   126   126   126   126   126
  13. Enrollment Related & Other Inc. Changes     3,900     3,900     3,900     3,900     3,900
  14. Total Income Changes (Net)   63,468   63,468   63,468   63,468   63,468
  15. Surplus (Deficit)(Line14 Minus Line 7)   0   0   0   0   0
       
 
 
 
 
* Total University Excluding Hershey, PCT & Ag Research & Extension                        
* * Retirement, Graduate Assistant Health Benefits, Property & Liability Insurances.                        
 


Exhibit I-4:
Budget Scenarios* - Average Annual Expense and Income Changes
Personnel Costs = 1 Percent Catch-up
(Dollars in Thousands)
        Scenario   Scenario   Scenario   Scenario   Scenario
        C1   C2   C3   C4   C5
Assumptions:  
    Personnel Cost   6.0%   6.0%   6.0%   6.0%   6.0%
    Appropriation Increase   -5.0%   -3.0%   0.0%   2.0%   4.0%
    Tuition Increase Percent   15.0%   13.9%   12.4%   11.3%   10.3%
    Information Resources and Tech Fee ($15)                    
    Student Activities Fee ($1)                    
    Total Tuition and Fees Increase Percent   14.7%   13.7%   12.2%   11.3%   10.2%
Expense Changes:                        
  1. Personnel Cost Increases                    
    a. Salary Increase   30,532   30,532   30,532   30,532   30,532
    b. Related Benefits     4,885     4,885     4,885     4,885     4,885
          Sub-Total   35,417   35,417   35,417   35,417   35,417
  2. Benefits & Insurances                    
    a. Health Care Insurance   9,277   9,277   9,277   9,277   9,277
    b. Other**     5,000     5,000     5,000     5,000     5,000
          Sub-Total   14,277   14,277   14,277   14,277   14,277
  3. Facilities                    
    a. Deferred Maintenance   1,000   1,000   1,000   1,000   1,000
    b. Capital Improvement   2,500   2,500   2,500   2,500   2,500
    c. New Facilities & Fuel & Utilities     3,500     3,500     3,500     3,500     3,500
          Sub-Total   7,000   7,000   7,000   7,000   7,000
  4. Program Needs                    
    a. Academic Initiatives   1,250   1,250   1,250   1,250   1,250
    b. Program Investments   6,000   6,000   6,000   6,000   6,000
    c. Student Activities   126   126   126   126   126
    d. School of IST   1,000   1,000   1,000   1,000   1,000
    e. Library/Information Technology   2,000   2,000   2,000   2,000   2,000
    f. Other Priority Needs     1,500     1,500     1,500     1,500     1,500
          Sub-Total   11,876   11,876   11,876   11,876   11,876
  5. a. Budget Reductions   (5,500)   (5,500)   (5,500)   (5,500)   (5,500)
    b. Reallocations and Enhancements     5,500     5,500     5,500     5,500     5,500
          Sub-Total   0   0   0   0   0
  6. Student Aid   1,200   1,200   1,200   1,200   1,200
  7. Total Expense Changes   69,770 69,770 69,770   69,770   69,770
 
Income Changes:                        
  8. State Appropriation Change E&G   (12,795) (7,677)   0   5,118   10,236
  9. Tuition   73,939 68,821 61,144   56,026   50,908
  10. Tuition - Summer Session   2,600   2,600   2,600   2,600   2,600
  11. Information Resources and Technology Fee   2,000   2,000   2,000   2,000   2,000
  12. Student Activites Fee   126   126   126   126   126
  13. Enrollment Related & Other Inc. Changes     3,900     3,900     3,900     3,900     3,900
  14. Total Income Changes (Net)   69,770   69,770   69,770   69,770   69,770
  15. Surplus (Deficit)(Line14 Minus Line 7)   0   0   0   0   0
       
 
 
 
 
* Total University Excluding Hershey, PCT & Ag Research & Extension                        
* * Retirement, Graduate Assistant Health Benefits, Property & Liability Insurances.
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